Jefferies starts Inspire Medical at buy, cites solid fundamentals (NYSE:INSP)

Jefferies initiated coverage of Inspire Medical Systems (NYSE:INSP) with a buy rating, citing solid fundamentals with no expected material impact from GLP-1 drugs.

“We expect continued fundamental strength driven by increasing HGNS penetration/awareness, label expansion, progress in reducing onerous per-surgery diagnostic requirements, and Inspire 5 next-gen system launch, which reduces surgery time by around 30%, in 2025,” the analysts said in their note.

Jefferies also said that it didn’t expect GLP-1s to materially impact the company’s total addressable market, adding that receding GLP-1 fears and continued execution could drive multiple expansion over time.

The investment bank set its price target for the stock at $245.